El Salvador: Recent Economic Developments
IMF Staff Country Reports, May 29, 1998
Source details
- Canonical URL
- El Salvador: Recent Economic Developments
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Bibliographic details
- Published: May 29, 1998
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451834703.002
Overview
- Timeframe analyzed: 1990–97.
- Purpose: Assess economic developments in El Salvador during 1990–97 and prospects as the economy reinserts into the global economy.
- Core focus areas: evolution of trade competitiveness; divergence from equilibrium of the real effective exchange rate; implications for the current account.
Key findings
- The exchange rate behavior in the last decade appears to have followed roughly the path predicted by a long-term equilibrium exchange rate model.
- That long-term equilibrium path is consistent with a current account deficit of about 2 percent of GDP.
- The paper describes the evolution of trade competitiveness and evaluates the divergence from equilibrium of the real effective exchange rate.
Analysis and themes covered
- Assessment of prospects for the Salvadoran economy in facing new challenges from reinsertion into the global economy.
- Detailed description of trade competitiveness evolution.
- Evaluation of divergence of the real effective exchange rate from its equilibrium value using a long-term equilibrium exchange rate framework.
Subject areas and keywords (as listed)
- Subjects: Balance of payments; Exchange rates; Foreign exchange; Outward remittances; Production; Real effective exchange rates; Remittances; Total factor productivity.
- Keywords: accumulated exchange rate appreciation; Central America; CR; emigration data; equilibrium exchange rate; Exchange rates; Global; INSEPRO incident; ISCR; maquila export; Outward remittances; private sector investment; Real effective exchange rates; Remittances; remittances model; Total factor productivity; trade competitiveness; Western Hemisphere.
Source: "El Salvador: Recent Economic Developments", IMF Staff Country Reports, May 29, 1998.
Content in this bundle
- El Salvador: Recent Economic Developments - ISCR/98/32